Stock Insurance

Yes. Most business owners will have a huge amount of capital tied up in their stock. You need to get it back if you are to stay financially sustainable. For this reason, any damage to your stock which makes it impossible to sell could be devastating to the future of your business. Having good stock insurance in place protects you financially and gives you peace of mind.

Insurers will calculate the cost of stock insurance depending on the total value, the type of business you work in and the perceived risks of stock being lost, damaged or spoiled. For example, if you have made a claim in the past five years your premiums may be a little higher.

There are a number of details you may need to pay attention to. Insurers may require you to fulfil certain provisions in order for stock insurance to be considered valid. This might include storing it in a certain way or maintaining certain security measures. Your cover may change as the quantity of stock you keep increases. Different insurers may also have certain risks they will not cover and upper limits to the amount of cover they are willing to provide. Any claim beyond this amount may have to come out of your own pocket.

This policy covers the cost of replacing any stock if it is lost, stolen or damaged. Many businesses need to hold stock to keep production going, and any disruption to this can cause huge problems. But by having stock insurance, you are quickly indemnified so you can buy the stock required to get production back on track as soon as possible.